diff --git a/src/devices/nm-device.c b/src/devices/nm-device.c
index 9ea665c8cb..186f184554 100644
--- a/src/devices/nm-device.c
+++ b/src/devices/nm-device.c
@@ -385,7 +385,7 @@ typedef struct _NMDevicePrivate {
 	bool            v4_route_table_initialized:1;
 	bool            v6_route_table_initialized:1;
 
-	NMDeviceAutoconnectBlockedFlags autoconnect_blocked_flags:4;
+	NMDeviceAutoconnectBlockedFlags autoconnect_blocked_flags:5;
 
 	bool            is_enslaved:1;
 	bool            master_ready_handled:1;
diff --git a/src/devices/nm-device.h b/src/devices/nm-device.h
index 8f376b20b4..3c703564bc 100644
--- a/src/devices/nm-device.h
+++ b/src/devices/nm-device.h
@@ -722,6 +722,8 @@ typedef enum {
 
 	NM_DEVICE_AUTOCONNECT_BLOCKED_WRONG_PIN             = (1LL <<  1),
 	NM_DEVICE_AUTOCONNECT_BLOCKED_MANUAL_DISCONNECT     = (1LL <<  2),
+	NM_DEVICE_AUTOCONNECT_BLOCKED_SIM_MISSING           = (1LL <<  3),
+	NM_DEVICE_AUTOCONNECT_BLOCKED_INIT_FAILED           = (1LL <<  4),
 
 	_NM_DEVICE_AUTOCONNECT_BLOCKED_LAST,
 
diff --git a/src/devices/wwan/nm-device-modem.c b/src/devices/wwan/nm-device-modem.c
index 4119d5987a..8ff931aa5e 100644
--- a/src/devices/wwan/nm-device-modem.c
+++ b/src/devices/wwan/nm-device-modem.c
@@ -125,14 +125,40 @@ modem_prepare_result (NMModem *modem,
 	if (success)
 		nm_device_activate_schedule_stage2_device_config (device);
 	else {
-		if (nm_device_state_reason_check (reason) == NM_DEVICE_STATE_REASON_SIM_PIN_INCORRECT) {
-			/* If the connect failed because the SIM PIN was wrong don't allow
-			 * the device to be auto-activated anymore, which would risk locking
-			 * the SIM if the incorrect PIN continues to be used.
-			 */
+		/* There are several reasons to block autoconnection at device level:
+		 *
+		 *  - Wrong SIM-PIN: The device won't autoconnect because it doesn't make sense
+		 *    to retry the connection with the same PIN. This error also makes autoconnection
+		 *    blocked at settings level, so not even a modem unplug and replug will allow
+		 *    autoconnection again. It is somewhat redundant to block autoconnection at
+		 *    both device and setting level really.
+		 *
+		 *  - SIM wrong or not inserted: If the modem is reporting a SIM not inserted error,
+		 *    we can block autoconnection at device level, so that if the same device is
+		 *    unplugged and replugged with a SIM (or if a SIM hotplug event happens in MM,
+		 *    recreating the device completely), we can try the autoconnection again.
+		 *
+		 *  - Modem initialization failed: For some reason unknown to NM, the modem wasn't
+		 *    initialized correctly, which leads to an unusable device. A device unplug and
+		 *    replug may solve the issue, so make it a device-level autoconnection blocking
+		 *    reason.
+		 */
+		switch (nm_device_state_reason_check (reason)) {
+		case NM_DEVICE_STATE_REASON_GSM_SIM_PIN_REQUIRED:
+		case NM_DEVICE_STATE_REASON_GSM_SIM_PUK_REQUIRED:
+		case NM_DEVICE_STATE_REASON_SIM_PIN_INCORRECT:
 			nm_device_autoconnect_blocked_set (device, NM_DEVICE_AUTOCONNECT_BLOCKED_WRONG_PIN);
+			break;
+		case NM_DEVICE_STATE_REASON_GSM_SIM_NOT_INSERTED:
+		case NM_DEVICE_STATE_REASON_GSM_SIM_WRONG:
+			nm_device_autoconnect_blocked_set (device, NM_DEVICE_AUTOCONNECT_BLOCKED_SIM_MISSING);
+			break;
+		case NM_DEVICE_STATE_REASON_MODEM_INIT_FAILED:
+			nm_device_autoconnect_blocked_set (device, NM_DEVICE_AUTOCONNECT_BLOCKED_INIT_FAILED);
+			break;
+		default:
+			break;
 		}
-
 		nm_device_state_changed (device, NM_DEVICE_STATE_FAILED, reason);
 	}
 }
diff --git a/src/nm-policy.c b/src/nm-policy.c
index 7f8c665c30..a59601053f 100644
--- a/src/nm-policy.c
+++ b/src/nm-policy.c
@@ -1751,17 +1751,14 @@ device_state_changed (NMDevice *device,
 	NMSettingConnection *s_con = NULL;
 
 	switch (nm_device_state_reason_check (reason)) {
-	case NM_DEVICE_STATE_REASON_GSM_REGISTRATION_DENIED:
-	case NM_DEVICE_STATE_REASON_GSM_REGISTRATION_NOT_SEARCHING:
-	case NM_DEVICE_STATE_REASON_GSM_SIM_NOT_INSERTED:
 	case NM_DEVICE_STATE_REASON_GSM_SIM_PIN_REQUIRED:
 	case NM_DEVICE_STATE_REASON_GSM_SIM_PUK_REQUIRED:
-	case NM_DEVICE_STATE_REASON_GSM_SIM_WRONG:
 	case NM_DEVICE_STATE_REASON_SIM_PIN_INCORRECT:
-	case NM_DEVICE_STATE_REASON_MODEM_INIT_FAILED:
 	case NM_DEVICE_STATE_REASON_GSM_APN_FAILED:
-		/* Block autoconnect of the just-failed connection for situations
-		 * where a retry attempt would just fail again.
+		/* Block autoconnection at settings level if there is any settings-specific
+		 * error reported by the modem (e.g. wrong SIM-PIN or wrong APN). Do not block
+		 * autoconnection at settings level for errors in the device domain (e.g.
+		 * a missing SIM or wrong modem initialization).
 		 */
 		if (sett_conn) {
 			nm_settings_connection_autoconnect_blocked_reason_set (sett_conn,