We have developed and investigated a dipole interaction model for calculating the polarizability of molecular clusters. The model has been parametrized from the frequency-dependent molecular polarizability as obtained from quantum chemical calculations for a series of 184 aliphatic, aromatic, and heterocyclic compounds. A damping of the interatomic interaction at short distances is introduced in such a way as to retain a traceless interaction tensor and a good description of the damping over a wide range of interatomic distances. By adopting atomic polarizabilities in addition to atom-type parameters describing the damping and the frequency dependence, respectively, the model is found to reproduce the molecular frequency-dependent polarizability tensor calculated with ab initio methods. A study of the polarizability of four dimers has been carried out: the hydrogen fluoride, methane, benzene, and urea dimers. We find in general good agreement between the model and the quantum chemical results over a wide range of intermolecular distances. To demonstrate the power of the model, the polarizability has been calculated for a linear chain of urea molecules with up to 300 molecules and one- and two-dimensional clusters of C-60 with up to 25 molecules. Substantial intermolecular contributions are found for the polarizability anisotropy, whereas the effects are small for the mean polarizability. For the mean polarizability of C-60, we find good agreement between the model and experiments both in the case of an isolated molecule and in a comparison of a planar cluster of 25 C-60 molecules with experimental results on thin films.