While an expensive, high-performance car like a Ferrari or Aston Martin is a dream come true for some, it can have a negative impact on your insurance premiums.

“High-performance cars will attract a higher premium as they are more expensive to repair in case of an accident and cost more to replace if stolen,” says insurance company, MiWay.

These cars also present a greater theft risk and therefore will attract higher premiums, according to the company.

Instead of buying expensive cars, some people buy cars they can afford and install the features of their dream car. Although they expect to pay lower premiums, this is not the case.

“When possible, avoid upgrading your car with modifications such as sun roofs, sound systems and mag wheels,” warns MiWay

One reason why these alterations increase premiums is because of the risks they present. According to Arrive Alive, altering a vehicle may compromise the safety of the driver and other road users.

“When people start tampering with the engine performance, drivetrain, suspension, wheels and brakes of a vehicle, it could compromise safety,” Arrive Alive says.

“This is because these vehicles were not designed for high performance driving on a public road,” adds the organisation.

Another surprising factor that may affect your insurance premiums is the colour of your vehicle. According to Miway darker colours are more accident prone than lighter colours.

“Vehicles in darker colours can be more difficult to see in the dark or in bad light conditions, and are therefore involved in more accidents,” says Miway.

Buying your dream car is important.  However; it is also advisable to shop around and compare insurance quotes to find the lowest premiums. That way, you will ensure that your car does not become your worst nightmare.