diff --git a/homeassistant/components/traccar/device_tracker.py b/homeassistant/components/traccar/device_tracker.py
index 39d1c2dd370..b3e2b2833c2 100644
--- a/homeassistant/components/traccar/device_tracker.py
+++ b/homeassistant/components/traccar/device_tracker.py
@@ -109,26 +109,38 @@ class TraccarScanner:
         self._scan_interval = scan_interval
         self._async_see = async_see
         self._api = api
+        self.connected = False
         self._hass = hass
 
     async def async_init(self):
         """Further initialize connection to Traccar."""
         await self._api.test_connection()
-        if self._api.authenticated:
-            await self._async_update()
-            async_track_time_interval(self._hass,
-                                      self._async_update,
-                                      self._scan_interval)
+        if self._api.connected and not self._api.authenticated:
+            _LOGGER.error("Authentication for Traccar failed")
+            return False
 
-        return self._api.authenticated
+        await self._async_update()
+        async_track_time_interval(self._hass,
+                                  self._async_update,
+                                  self._scan_interval)
+        return True
 
     async def _async_update(self, now=None):
         """Update info from Traccar."""
-        _LOGGER.debug('Updating device data.')
+        if not self.connected:
+            _LOGGER.debug('Testing connection to Traccar')
+            await self._api.test_connection()
+            self.connected = self._api.connected
+            if self.connected:
+                _LOGGER.info("Connection to Traccar restored")
+            else:
+                return
+        _LOGGER.debug('Updating device data')
         await self._api.get_device_info(self._custom_attributes)
         self._hass.async_create_task(self.import_device_data())
         if self._event_types:
             self._hass.async_create_task(self.import_events())
+        self.connected = self._api.connected
 
     async def import_device_data(self):
         """Import device data from Traccar."""
diff --git a/homeassistant/components/traccar/manifest.json b/homeassistant/components/traccar/manifest.json
index 5c859fefb71..0f9aa6e8464 100644
--- a/homeassistant/components/traccar/manifest.json
+++ b/homeassistant/components/traccar/manifest.json
@@ -3,7 +3,7 @@
   "name": "Traccar",
   "documentation": "https://www.home-assistant.io/components/traccar",
   "requirements": [
-    "pytraccar==0.7.0",
+    "pytraccar==0.8.0",
     "stringcase==1.2.0"
   ],
   "dependencies": [],
diff --git a/requirements_all.txt b/requirements_all.txt
index fa5ee0cc221..10e8e52dced 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -1432,7 +1432,7 @@ pytile==2.0.6
 pytouchline==0.7
 
 # homeassistant.components.traccar
-pytraccar==0.7.0
+pytraccar==0.8.0
 
 # homeassistant.components.trackr
 pytrackr==0.0.5