Could anyone please tell me what is this connector for???

It is located beneath the passenger seat...

 

This is inside the car, not underneath right? Might help to know what year the car is, must be an FB. Maybe the seatbelt light indicator?

 

I bet it's the sensor for the "Exhaust Overheat" light in the dash.

 

Yeah just checked it out it looks like like the shape of the heat hazard sensor.

 

Yep, heat hazard sensor. You can leave it like that and never worry about it since it'll never turn on with an open circuit.

It detects when the floor pan gets extremely hot and sends the message to the dash dummy light letting you know you're running hot. I would sure hope you'd notice the coolant temp before the floor would get too hot though...

 

Sweet!!!!!

Thank you all guys for the answers!!!!

Yup, I will leave it like that. In any case with all the insulation I'm planning to install the light would never turn on.