Localization in Vehicular Ad Hoc Networks is a challenging issue due to the dynamic topology and high mobility of vehicles. Finding the exact location of the vehicles is not possible in this network due to the vehicles moving speed. In vehicular ad hoc networks, various kinds of localization techniques are used to know the position and the location of the vehicles. These techniques do have some limitations due to obstacles on the roadside, building shadow, tunnels and bad weather condition, etc. This paper is motivated to propose an algorithm to increase the localization accuracy and localization error. Acknowledgement based Localization Method (ALM) is used to improve the vehicle’s positioning information while broadcasting an Emergency Safety Message. ALM updates the position information whenever the vehicle changes its position. The proposed algorithm is compared with RSSI, TOA and DLM based localization techniques. The result shows that ALM algorithm improves the accuracy level and reduces the error rate caused by incorrect position estimation.