Consider the market for insurance against car theft. Some people are more likely than others to have their car stolen. Because insurance companies have less information about this risk than their customers do, the market for car theft insurance suffers from asymmetric information. The most efficient solution to this asymmetric information problem would be for insurance companies to:

A. Require all customers to disclose their place of residence

B. Increase the price of theft insurance for all customers

C. Insist that their customers install car alarms

D. Choose to insure only people who park in a guarded parking garage