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It is an anti-theft device which when engaged prevents the vehicle from being taken by anyone who does not know about the switch and that it needs to be flipped in order to start the car.
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I believe you are talking about the inertia switch which is most commonly used by Ford. This is actually a safety device in case the vehicle is involved in an accident. Momentum forces the steel ball inside the switch to break contact in the circuit, thereby stopping fuel flow. In most ford products, it is near the drivers rear tail light in the trunk, or under the passenger kickpanel under the dash.
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