My heart goes out to you and the owner of the dog. I've never hit a dog (thank god) although I have hit squirrels, unfortunately. But last spring I was traveling behind a car that hit a dog. The car didn't stop. I did and stayed there helplessly while the dog died. It was out in the country and I had no idea how to go about finding the owners. I was unbelievably shaken up, so I can imagine what you must be going through. I keep my dog confined in a fenced yard but, very occasionally, she has gotten out. One of my greatest fears when this happens is that she isn't "street smart" and would certainly run into the path of a car if a squirrel or cat happened to be on the other side of the road. If your neighbors are anywhere near reasonable they won't blame you for the accident. YOu did the honorable thing and told her, and there wasn't much else you could do. I agree with previous posts, that's the risk for pets that run loose. The owner is ultimately responsible.