This paper proposes an adaptive control allocation approach for over-actuated systems with actuator saturation. The methodology can tolerate actuator loss of effectiveness without utilizing the control input matrix estimation, eliminating the need for persistence of excitation. Closed loop reference model adaptive controller is used for identifying adaptive parameters, which provides improved performance without introducing undesired oscillations. The modular design of the proposed control allocation method improves the flexibility to develop the outer loop controller and the control allocation strategy separately. The ADMIRE model is used as an over-actuated system, to demonstrate the effectiveness of the proposed method using simulation results.