* Loss of Lubrication: The differential needs oil to lubricate its gears. A leak means reduced lubrication, leading to increased friction, heat, and potential damage to the gears and bearings. This damage can be significant and expensive to repair.
* Complete Failure: Continuing to drive with a leaking differential could lead to a complete failure of the rear differential, leaving you stranded. The damage could be catastrophic, requiring a costly rebuild or replacement.
* Safety Hazard: A severely damaged differential can affect drivability and steering, potentially leading to a loss of control and an accident.
* Further Damage: Driving with a leak will likely worsen the problem, potentially damaging the differential beyond simple repair.
In short, while you might be able to drive a short distance, it's extremely risky. Get it towed to a mechanic immediately to assess the leak and get it repaired. Ignoring the problem will only lead to more costly repairs down the road.