The quantum Rabi model (QRM) is a cornerstone in the study of light-matter interactions within cavity and circuit quantum electrodynamics (QED). It effectively captures the dynamics of a two-level system coupled to a single-mode resonator, serving as a foundation for understanding quantum optical phenomena in a great variety of systems. However, this model may produce inaccurate results for large coupling strengths, even in systems with high anharmonicity. Moreover, issues of gauge invariance further undermine its reliability. In this work, we introduce a renormalized QRM that incorporates the effective influence of higher atomic energy levels, providing a significantly more accurate representation of the system while still maintaining a two-level description. To demonstrate the versatility of this approach, we present two different examples: an atom in a double-well potential and a superconducting artificial atom (fluxonium qubit). This procedure opens new possibilities for precisely engineering and understanding cavity and circuit QED systems, which are highly sought-after, especially for quantum information processing.