There was a caterpillar on the cabbage.
I thought it was a caterpillar, but it was actually my sister's fake eyelashes.
I videotaped a giant caterpillar fighting a giant centipede.
When you think of a fur insect what do you think of? My mind immediately goes to a caterpillar. Imagine the furriest caterpillar you can and touch it. How does it feel? Furry?
The readings for this word are strange. Both use the kun'yomi readings - 虫 uses the reading you learned with the kanji, so that's easy. The 毛 part is like the vocab word 毛 you learned in the previous lesson.