The woman was injured in the accident at Cuddy Bridge, Peebles in the Borders at around 11am yesterday. The male driver was trapped inside the car and firefighters had to use hydraulic cutting equipment to free him.
A spokeswoman for the Scottish Fire and Rescue Service said: "We were called to a one-car road traffic collision at Cuddy Bridge in Peebles where the vehicle had struck a bollard.
"There were two elderly occupants, one was cut free using hydraulic cutting gear."
Both the driver and passenger were taken to the Edinburgh Royal Infirmary by ambulance but the woman died later.
The A72 was closed while investigations into the accident were carried out.