I assume you're saying the old man got killed?
Death is a pretty traumatic thing, but I agree with kitty_kate, remind your daughter that life is about taking risks. Use this as an opportunity to impress the importance of wearing a helmet, and being extra careful.
But, IMO, helping her to avoid her fear, by driving her, will probably do more harm later than good now.
My father (the good one) could be a real hard-ass about stuff like this sometimes. His philosophy on life was when something scary happens you confront it right away... if you wait, it'll overwhelm you. The longer you wait, the harder it will be to confront your fear. If you confront it immediately, even just a little bit, at least you'll be able to do something later.
I don't think I'd have the fortitude to handle life if it wasn't for that hard-ass philosophy of his.
If I were in your position I'd tell her she needs to get on her bike and ride, if only for a short distance. Down the street one block, or something, is fine. But there's no way I'd let her stay off of her bike completely.
Biking is something she enjoyed. Being a bit cruel now will insure that she continues to enjoy it later.