Temperature sensors in your vehicle can be used for a few different things and some modern vehicles have more than one. Some temperature senders short a circuit when the coolant ( or oil in some cars like my old 89 VW ) gets to a certain temperature to light up your temperature warning light on your dash. These type of senders also turn on and off electric cooling fans. Other senders change in resistance with temperature to signal your temp gauge with the correct reading.
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temp. sensors do just that. They tell the temperature more accurately than a thermometer.