The vehicle monitoring system should be precise, automatic, fast and very low reaction time. At the sensitive and accident prone areas like schools, hospitals, parks etc., the warning boards of speed limit are not effective. The controlling of speed must be done automatically without any interruption from other sources by the vehicle monitoring system. For the particular zone the recommended speed limit is assigned to the transmitters erected in the zone. When the vehicle enters the zone the speed control automatically goes under the monitoring of the system. Using GSM accident alert is sent to the authority and the address of the vehicle, to lessen the dangers of the accident. The message with accident alert and location of vehicle is sent. The owner of the car can also track the car and monitor the speed of the car. By the GPS the location of vehicle is tracked, the velocity of vehicle can also be known. The vehicle information can be obtained at any time by sending SMS to the GSM module. Also the vehicle speed can be controlled by sending SMS. © Research India Publications.