* Complete differential failure: This could leave you stranded and potentially cause damage to other drivetrain components.
* Loss of control: A severely damaged differential might cause a loss of power or even locking of a wheel, making it difficult to steer and control the vehicle, especially at higher speeds.
* Further damage: Continuing to drive with a noisy differential will likely worsen the damage, leading to more expensive repairs.
The noise itself can indicate a variety of problems, from low gear oil to damaged gears or bearings. You should have a mechanic inspect the differential as soon as possible. Driving with a problem that could lead to a catastrophic failure is never worth the risk.