Whilst big wheels might look nice, do note the following :
The tyres will be more expensive.
The tyres will wear out quicker - so those more expensive tyres need replacing more often
The lower-profile tyres will be more susceptible to damage from potholes and the like
The bigger alloy wheels are also more susceptible to damage.
The ride quality will be worse.
You do need to inform your insurance company, and they might increase your premium - failure to inform (and they do ask if the vehicle has been modified in any way) would be insurance fraud.
On the plus side ...
The cornering and handling will be fractionally better. In general motoring, however, you'd really struggle to notice the difference. Maybe if you were flat out round a racetrack.
As to what size wheel (and what size of tyre to put on them), if you have a look at the sticker which details your tyre pressures (usually on the drivers door slam panel), then it will tell you all the options for your car.
I believe you can go up to 18" wheels, if you're really a masochist.
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