All Wheel Drive allows vehicles to have four contact patches (where the tire meets the ground) providing power during driving as opposed to just two. Uphill situations from a standing start (ie, red light) will often have two wheel drive vehicles (FWD or RWD) scrambling for traction in wet/cold conditions, but a vehicle with AWD will simply apply power to the wheels with more traction. In slippery conditions (sand, water, snow, ice, etc), a vehicle may be able to pull itself along using just one wheel.
AWD will not bend the laws of physics - just because an AWD equipped vehicle can accelerate and turn better in slippery conditions does not necessarily mean it will stop better. Good driving and common sense come into play.
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