I think it's worth spending a bit of time on this subject, because if you are
using Word for work purposes a good understanding of this may be important to
your career
Regrettably, no Autorecover does not save backups. It saves "Deltas".
Autorecover saves only the changes, not the document itself. This works well
if the document is still available, however...
Word starts. The first place it looks is in its Temp directory. If it finds
anything in there, it knows it did not exit normally the most recent time it
stopped. As part of a normal exit, Word cleans out its Temp directory, so if
there's anything in there it knows it crashed last time.
If Word does find abandoned autorecover files, it then attempts to open the
document these are associated with. If that document can be opened, Word
applies the changes from the autorecover files to the document and you get
your document and all its changes back, in the same state it was when you left
it (possibly excepting the last ten minutes).
However, if the reason we crashed was that Word was unable to continue due to
document corruption, Word may not be able to open the document. It then has
nothing to apply the changes to, and you lose the lot.
If you have been performing manual saves with Command + S every time you pause
to think (and if you have been using Word longer than a week or two, you will
be
) then the Autorecover file may well be older than the document. When
it restarts, Word will offer to reclaim your document: if you say YES, you
could be taking the document back ten minutes, abandoning changes you have
already saved to the document. There will be no sign that this has happened.
You may be severely embarrassed because you added new content in the ten
minutes since the last autorecover. You saved the changes, and a few seconds
later, Word crashed. You recover, and continue without checking the document.
A month later you discover that the new material you thought you had added is
magically "not there" and the customer is on your case. Your new material was
in the file but not the autorecover, when you recovered, Word stepped the
document back a version and lost your changes. This is the biggest hazard
with Autorecover. If you are saving on Command + S as often as you should be,
your Autorecover files are almost always older than your document.