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The reason why people seem to fear terrorism more than much more common sources is that terrorism is much more unpredictable.
We can reasonably estimate, based on prior occurances, how many people will die this year from car accidents or cancer. But there is no good way to estimate how many will die of terrorism, because the terror many fear is the kind that could potentially kill millions in a way never before seen (bioweapons, etc.). Because people don't know if something like that will happen, or how likely it is to happen, they are more fearful.
Another difference is that there is an intentionality behind terrorist killings that is not found behind the more common sources of death. Because there is a group of people that want terrorist deaths to happen, many find them much more infuriating and fear-inducing.
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