Expect the worse. Deliberately left 30% of the luggage behind in Jeddah because the plane was overweight. No Eid gifts for the family. Part of the luggage arrived in Islamabad after my return and was picked up by my family. Part of my luggage still missing more than 3 weeks after my journey. Customer service unresponsive and has no clue how to deal with the situation. The lower fare definitely not worth the hassle...
Do I need Travel insurance?: Some low cost carriers offer you travel insurance by default. This insurance covers you for the duration of your flight/trip. If you already have a comprehensive health insurance policy, you are probably covered much better than you would be with the travel insurance offered by the airline. In this case, there is no point buying travel insurance together with the flight ticket.