The man was evacuated to Barzilai Hospital in Ashkelon, where he was pronounce dead - two others were reportedly injured in the attack. Following the death, the road the driver was traveling on, Route 34 as well as Highway 232 have been shut down to traffic.
The direct hit took place as President Reuven Rivlin was touring Gaza border communities.
"When we arrived, we saw a vehicle completely crushed after it was hit by a rocket, a 60-year-old man was lying next to the car unconscious," said Ravit Martinez, a Magen David Adom paramedic.
"He suffered from a shrapnel wound in the thigh and lost a lot of blood. We attempted to give him life-saving medical treatment...on the way we had to perform CPR and evacuated him to the hospital as he was in critical condition," she said.
Hamas claimed responsibility for the death, as well as the barrage of rockets they fired into Israeli territory over the past 24 hours.
Close to 600 rockets have been fired at Israel from the Gaza Strip since the security situation escalated over the weekend, according to the Israeli Air Force.
In unrelated strike incidents,three people have been confirmed dead and several more are in critical condition. Dozens have been wounded.
Red alerts continue to rock the country from the Gaza border, to the south and even central Israel.