diff --git a/README.md b/README.md
index 50212e0..16b5ac7 100644
--- a/README.md
+++ b/README.md
@@ -325,7 +325,7 @@ interface WithCyclesConfig {
   // Reservation settings
   ttlMs?: number;          // Time-to-live in ms (default: 60000, range: 1000–86400000)
   gracePeriodMs?: number;  // Grace period in ms (range: 0–60000)
-  overagePolicy?: string;  // "REJECT" (default), "ALLOW_IF_AVAILABLE", "ALLOW_WITH_OVERDRAFT"
+  overagePolicy?: string;  // "ALLOW_IF_AVAILABLE" (default), "REJECT", "ALLOW_WITH_OVERDRAFT"
   dryRun?: boolean;        // Shadow mode — evaluates budget without executing
 
   // Subject fields (override config defaults)
diff --git a/src/lifecycle.ts b/src/lifecycle.ts
index 11a086e..5747f44 100644
--- a/src/lifecycle.ts
+++ b/src/lifecycle.ts
@@ -134,7 +134,7 @@ function buildReservationBody(
     action,
     estimate: { unit, amount: estimate },
     ttl_ms: ttlMs,
-    overage_policy: cfg.overagePolicy ?? "REJECT",
+    overage_policy: cfg.overagePolicy ?? "ALLOW_IF_AVAILABLE",
   };
 
   validateGracePeriodMs(cfg.gracePeriodMs);
diff --git a/src/streaming.ts b/src/streaming.ts
index 1c654d2..4de05f6 100644
--- a/src/streaming.ts
+++ b/src/streaming.ts
@@ -120,7 +120,7 @@ export async function reserveForStream(
     actionTags,
     ttlMs = DEFAULT_TTL_MS,
     gracePeriodMs,
-    overagePolicy = "REJECT",
+    overagePolicy = "ALLOW_IF_AVAILABLE",
     dimensions,
   } = options;
 
diff --git a/tests/lifecycle.test.ts b/tests/lifecycle.test.ts
index fc62aed..1742e09 100644
--- a/tests/lifecycle.test.ts
+++ b/tests/lifecycle.test.ts
@@ -62,7 +62,7 @@ describe("AsyncCyclesLifecycle", () => {
     const createBody = client.createReservation.mock.calls[0][0];
     expect(createBody.idempotency_key).toBeDefined();
     expect(createBody.ttl_ms).toBe(60000);
-    expect(createBody.overage_policy).toBe("REJECT");
+    expect(createBody.overage_policy).toBe("ALLOW_IF_AVAILABLE");
 
     // Verify wire-format keys in commit body
     const commitBody = client.commitReservation.mock.calls[0][1];