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And by the way. You ARE responsible and need to help cover the vet bills.
For the law alone, you damaged another person's property.
From the moral standpoint, you insured someone's pet, a living being. You have absolutely a moral obligation to take responsibility.
And as a parent, you have a moral obligation to teach your children to take responsibility for your actions and mistakes. Even if it cost you.
It is the owners responsibility to keep the dog out of the road. There is zero legal or moral responsibility to cover any vet bills.
The only property damage that would even be considered is damage to the vehicle, which requires stopping, calling the police to file an accident report and then reporting the accident with documented damage to the car insurance company.
Legally the dog owner is responsible.
Financially the dog owner is responsible.
Morally the dog owner is responsible for their pets wellbeing.
How could you get it so backwards? The dog owner failed to keep their dog safe and under control.
What an insane take.