re: AWD vs FWD vehicles

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Does AWD improve driving in rain/puddle conditions? i know tires matter huge here but does AWD do better?

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AWD doesn't add enough value over FWD in rain.

On ice and snow, it does. And it can help you get back onto the road when you run off of it in a snow storm. I wouldn't bother with it if you live on the gulf coast. It's a waste of fuel and it's more mechanical parts to maintain and inevitably break.